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Riding A Housing Tidal Wave; Outsourcing Lifts Profits, Sales At Building Materials.(THE IBD 100)

Investor's Business Daily

| May 02, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: David Saito-Chung

The housing boom across the U.S. has led to huge demand for all the components needed to build houses, from roof and floor trusses to windows to interior trim. Large-scale home builders, meanwhile, have also counted on outsourcing to finish projects on time and within budget. Building Materials Holding has benefited greatly from both of these trends.

The firm provides not just basic housing materials such as lumber, cabinets and stairs. It also supplies workers, handles procurement and helps builders manage risk. It builds houses on-site from the foundation to the roof line.

In April, the San Francisco-based firm said it bought a majority share in Riggs Plumbing. The plumbing installation expert serves high-volume home builders in the Phoenix and Tucson, Ariz., markets.

Growth has been solid the past six quarters. Earnings per share have increased 21%, 675%, 119%, 119%, ...

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